Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 30 September 2014
Indiana Man Pleads Guilty to Prisoner Transportation FraudRead the Press Release
Follow @NDFLNewsTALLAHASSEE – William Cassidy, 50, of Florence, Indiana, pled guilty today to wire fraud in connection with a scheme to obtain money by operating a private prisoner transportation business under false pretenses. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment in this case alleged that between October 2010 and June 2014, Cassidy transported prisoners throughout the country as an employee and manager of U.S. Prisoner Extradition Service and Interstate Criminal Extraditions. In contracting with sheriffs’ offices to transport prisoners, including violent felons, from one jurisdiction to another, Cassidy made affirmative misrepresentations concerning the security and treatment of the prisoners, and concealed material facts concerning his fitness to operate as a prisoner transport agent. The indictment alleges that Cassidy concealed the fact that he was on felony probation while transporting prisoners and that his conditions of probation prohibited him from associating with felons, from visiting jails, from carrying weapons, and from leaving the state of Kentucky. The indictment also alleges that during his transportation of female prisoners, Cassidy left the prisoners unrestrained, gave them drugs and alcohol, and had sex with the prisoners in his vehicle and in hotel rooms.
Cassidy faces a maximum sentence of 20 years in prison. Sentencing is scheduled for January 8, 2015, in Tallahassee before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Justice Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.
Hazleton Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a criminal information charging Santiago Guerrero-Nova, age 31, of Hazleton, Pennsylvania, with distributing heroin on August 28, 2013.
United States Attorney Peter Smith stated that the charge is the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Government Settles False Claims Act Allegations Against Guam-Based Construction Company for $285,000Read the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States of America, on behalf of the United States Environmental Protection Agency (“U.S. EPA”), secured $285,000 in settlement of a civil lawsuit against GRH Technologies Construction Co., Ltd. (“GRH”), and GRH’s Treasurer, Chen Pei SU (“SU”). The lawsuit alleged that GRH and SU committed a violation of the False Claims Act, 31 U.S.C. § 3729 et seq., when they submitted a fraudulent claim for reimbursement under a contract funded by the American Recovery and Reinvestment Act (“ARRA”) between Guam Waterworks Authority and GRH for services including leak detection, pipeline, location, mapping, leak control, and related training. GRH and SU submitted a claim for reimbursement of $117,912, which GRH and SU purport was used to purchase equipment from a Taiwan-based company. However, the check used to pay the Taiwan-based company was never negotiated and GRH and SU could not produce evidence that such payment was made. The lawsuit sought triple damages and civil penalties from GRH and SU.
The United States settled the False Claims Act lawsuit with GRH and SU for $285,000. Upon collecting the $285,000 in settlement funds, the United States dismissed its claims on August 8, 2014.
U.S. Attorney Alicia A.G. Limtiaco stated, “False claims to the United States government have
an effect on all its citizens and on the agencies that serve those citizens. They affect not only the particular agency to whom the specific act was committed, but in the aggregate they affect the overall vitality of government programs and contracts and detract from the millions of Americans who could benefit from those programs. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and federal agencies in this region, most specifically in this case the U.S. Environmental Protection Agency, continue to aggressively enforce the False Claims Act against those that violate the public trust and misuse public funds.”This case was investigated by the U.S. EPA and prosecuted by Assistant U.S. Attorneys Mikel W. Schwab and Jessica F. Cruz.
Georgia Man Sentenced to 27 Months in Prison for Defrauding Investors Out of More Than $800,000Read the Press Release
NEWARK, N.J. – A Georgia business owner who held himself out to be an investor and loan broker was sentenced today to 27 months in prison for his role in defrauding investors of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Ronnie Singleton, 41, of Lithonia, Ga., previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiring to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.According to documents in this case and statements made in court:
Singleton owned and operated a business called Wonder World Inc. and held himself out to be a financier. Using the Internet and telephone, he met his codefendant, Michael Woodruff, 66, of Peeples Valley, Ariz., and the two agreed to work together to find investors. Singleton falsely represented that he would providing financing for real estate deals through a “European system of financing” that involved leasing financial instruments. Singleton received more than $800,000 in investors’ funds, $360,000 of which he wired to Woodruff. Instead of obtaining the promised financing for the real estate projects, Singleton instead used the investors’ money for his own personal benefit.
In addition to the prison term, Judge Salas sentenced Singleton to three years of supervised release and ordered him to pay restitution of $830,500 in restitution. Woodruff previously pleaded guilty in Arizona federal court to his role in the scheme and is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jenny Kramer of the Economic Crimes Unit.
The charges and allegations against Woodruff are merely accusations and he remains innocent unless and until proven guilty.
14-349
Defense counsel: Paul Condon Esq., Jersey City, N.J.Four Members of International Computer Hacking Ring Indicted for Stealing Gaming Technology, Apache Helicopter Training SoftwareRead the Press Release
Four members of an international computer hacking ring have been charged with breaking into computer networks of prominent technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other proprietary data. Two of the charged members have already pleaded guilty. The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”; and proprietary software used to train military helicopter pilots.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell. “The American economy is driven by innovation. But American innovation is only valuable when it can be protected. Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”
“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly. “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”
Nathan Leroux, 20, of Bowie, Maryland; Sanadodeh Nesheiwat, 28, of Washington, New Jersey; David Pokora, 22, of Mississauga, Ontario, Canada; and Austin Alcala, 18, of McCordsville, Indiana, were charged in an 18-count superseding indictment returned by a federal grand jury in the District of Delaware on April 23, 2014, and unsealed earlier today. The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets. The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.
Today, Pokora and Nesheiwat pleaded guilty to conspiracy to commit computer fraud and copyright infringement and are scheduled for sentencing on Jan. 13, 2015. Pokora was arrested on March 28, 2014, while attempting to enter the United States at the Lewiston, New York, Port of Entry. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information.
According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army. The defendants and others allegedly obtained access to the victims’ computer networks through methods including SQL injection and the use of stolen usernames and passwords of company employees and their software development partners. Once inside the victims’ computer networks, the conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data cyber-theft allegedly included source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console; intellectual property and proprietary data related to Xbox Live, Microsoft’s online multi-player gaming and media-delivery system; Apache helicopter simulator software developed by Zombie Studios for the U.S. Army; a pre-release version of Epic’s video game, “Gears of War 3;” and a pre-release version of Activision’s video game, “Call of Duty: Modern Warfare 3.” The defendants also allegedly conspired to use, share and sell the stolen information.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service. The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.
# # #
Four Members of International Computer Hacking Ring Indicted for Stealing Gaming Technology, Apache Helicopter Training SoftwareRead the Press Release
WILMINGTON, Del. – Four members of an international computer hacking ring have been charged with breaking into computer networks of prominent technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other proprietary data. Two of the charged members have already pleaded guilty. The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”; and proprietary software used to train military helicopter pilots.
U.S. Attorney Charles M. Oberly III of the District of Delaware, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.
“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly. “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”
Nathan Leroux, 20, of Bowie, Maryland; Sanadodeh Nesheiwat, 28, of Washington, New Jersey; David Pokora, 22, of Mississauga, Ontario, Canada; and Austin Alcala, 18, of McCordsville, Indiana, were charged in an 18-count superseding indictment returned by a federal grand jury in the District of Delaware on April 23, 2014, and unsealed earlier today. The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets. The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.
Today, Pokora and Nesheiwat pleaded guilty to conspiracy to commit computer fraud and copyright infringement. Their sentencings have yet to be scheduled. Pokora was arrested on March 28, 2014, while attempting to enter the United States at the Lewiston, New York, Port of Entry. Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information.
According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army. The defendants and others allegedly obtained access to the victims’ computer networks through methods including SQL injection and the use of stolen usernames and passwords of company employees and their software development partners. Once inside the victims’ computer networks, the conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information. Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies.
Specifically, the data cyber-theft allegedly included source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console; intellectual property and proprietary data related to Xbox Live, Microsoft’s online multi-player gaming and media-delivery system; Apache helicopter simulator software developed by Zombie Studios for the U.S. Army; a pre-release version of Epic’s video game, “Gears of War 3;” and a pre-release version of Activision’s video game, “Call of Duty: Modern Warfare 3.” The defendants also allegedly conspired to use, share and sell the stolen information.
The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million. To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.
In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service. The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada.
The case is being prosecuted by Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware and Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section.Founder of Bixby Energy Systems Sentenced to 25 Years in Prison for Stealing More Than $56 Million from InvestorsRead the Press Release
Minneapolis – ROBERT ALLEN WALKER, 72, of Ramsey, Minnesota, was sentenced on September 25, 2014, to 25 years in federal prison for stealing more than $56 million from hundreds of investors. On March 5, 2014, after an 8-week trial, WALKER was found guilty of four counts of Mail Fraud, nine counts of Wire Fraud, one count of Witness Tampering and three counts of Tax Evasion.
From 2001 to 2011, WALKER was the president, chief executive officer, and chairman of the board at Bixby Energy. In that capacity, he raised more than $43 million from at least 1,800 investors by offering company securities based on false and misleading information about 1) the payment of salaries and commissions to Bixby officers and directors; 2) the operational capability of Bixby’s core product, a coal gasification machine; and 3) the prospect of conducting an initial public stock offering. WALKER also used investor money fund his and his family’s lavish lifestyles.
As part of the scheme, WALKER told investors that Bixby officers and directors would not be compensated for selling company securities but then directed payments of at least $3 million to a company officer for doing just that. From those payments, the officer then kicked back more than $600,000 to WALKER. This “commission sharing” arrangement was not only concealed from investors but from the company’s board of directors. WALKER also lied repeatedly about the capability of the company’s coal gasification machine, characterizing it as “proven” and “ready for market,” when, in fact, the technology had never worked, and the machine had substantial defects.
Moreover, throughout the company’s existence, WALKER told investors that Bixby was going to conduct an initial public offering of its stock in the near future, when, in truth, he knew it could not be done because, among other things, the company could not obtain legitimate audited financial statements, and the company’s coal gasification machine was incapable of delivering results consistent with WALKER’s outlandish promises.
As part of his sentence, WALKER was ordered to pay over $56 million in restitution.
Assistant U.S. Attorneys David J. MacLaughlin and Benjamin F. Langner prosecuted this case.
This case was the result of an investigation conducted by U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation Division.
Defendant Information:
ROBERT ALLEN WALKER, 72
Ramsey, MN
Convicted:• Mail Fraud, 4 counts
• Wire Fraud, 9 counts
• Witness Tampering, 1 count
• Tax Evasion, 3 counts
Sentenced:
• 25 years in federal prison
• 3 years supervised release###
Former Spokane Man Sentenced to Prison for Defrauding Investors in Ethanol Plant SchemeRead the Press Release
Spokane –Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Robert J. Braun, age 55, originally of Spokane, was sentenced today in United States District Court after pleading guilty to five counts of wire fraud and one count of securities fraud. Senior United States District Court Judge Robert H. Whaley, Jr. sentenced Braun to a three year term of imprisonment for his role in defrauding dozens of investors in the Spokane area. The Court also ordered Braun to pay $1,482,250 in restitution and imposed three years of court supervision following his release from Federal prison.
According to information disclosed during court proceedings, Braun told investors that he was raising funds for an ethanol plant that would be built in the Spokane area. Braun told investors they would be repaid their investment within a few months, and would then earn extraordinary dividends annually. Braun used the business names Novahol Spokane, LLC and S & B Energy Spokane, LLC in furtherance of his scheme.
As part of his fraudulent scheme, Braun used investor funds for personal living expenses, including more than $150,000 on mortgage payments and expenses for three homes, more than $50,000 at department and clothing stores, and more than $80,000 for a women’s shoe and accessory store that he owned in downtown Spokane (Boutique 238). Braun solicited several victims when his bank accounts had low or negative account balances. Between 2008 and 2012, Braun lulled investors into a false sense of security through a series of emails that claimed that billions in funding for the ethanol plant was imminent.
Michael C. Ormsby said, “Investors should be wary of any investment opportunity that seems too good to be true, even if someone they know and trust introduces them to the opportunity. Perpetrators of fraud are aware of the fears of investors and can tailor their schemes to convince even the most cautious investors to part with their money.” Michael C. Ormsby added that, “The sentence imposed in this case will send the right message to would be fraudsters that their schemes will be prosecuted and punished.”
The investigation was conducted by the Federal Bureau of Investigation, the Washington State Department of Financial Institutions (DFI), and the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys K. Jill Bolton and George J.C. Jacobs, III, as well as Special Assistant United States Attorney Robert Kondrat, a DFI attorney cross-designated to the United State Attorney’s Office to prosecute securities fraud cases.
CR-13-083-RHW
Former Owner of Mortgage Lending Company Charged with Bank FraudRead the Press Release
– Submitted 53 fraudulent funding requests for nonexistent mortgage loans totaling $17,900,000
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company was charged by federal grand jury in Louisville, with devising a scheme to defraud and to obtain moneys owned or under the custody and control of National City Bank and PNC Bank, financial institutions, of $12,000,000 by submitting fraudulent funding requests for nonexistent mortgage loans announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the single count indictment, Brady Bunte, age 49, of Orange County, California, from March 2007 through November 2008, caused his company, Trust One Mortgage, LLC (Trust One), to submit approximately 53 fraudulent funding requests on its warehouse line of credit to National City Bank (NCB) and PNC Bank (PNC). Each of the approximately 53 fraudulent funding requests was for a nonexistent mortgage loan. The fraudulent funding requests caused NCB to issue approximately $17,900,000 in moneys to Trust One.
Further, from approximately March 2007 through October 2008 the fraudulent funding requests submitted by Trust One and Bunte caused NCB to suffer a loss of approximately $12,000,000. NCB’s warehouse lending operations were located in Louisville, Kentucky. In or around October 2008, PNC acquired NCB.
As a warehouse lender, NCB provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders. The mortgage lenders, such as Trust One, were required to pay off specific loans issued on its warehouse line, by warehouse lenders, within a set period of time or when the warehouse lender demanded payment.
Bunte was charged in a sealed indictment on September 18, 2014. He was arraigned on the charge yesterday in U.S. District Court located in Santa Ana, California, and was released on a $100,000 third-party bond.
If convicted at trial, Bunte could be sentenced to no more than 30 years in prison, a five year period of supervised release and fined $1,000,000.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Klansman Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced. Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights.
Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house. Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross. Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck. The cross was placed in the driveway leading up to the house and was ignited. The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence.
Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing.
“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”
“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”
Timothy Flanagan faces up to 20 years in prison and fines up to $500,000. Timothy Stafford faces up to 10 years in prison and fines of up to $250,000. Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.
This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.
Former Klansman Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced. Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights.
Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house. Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross. Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck. The cross was placed in the driveway leading up to the house and was ignited. The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence.
Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing.
“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”
“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”
Timothy Flanagan faces up to 20 years in prison and fines up to $500,000. Timothy Stafford faces up to 10 years in prison and fines of up to $250,000. Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.
This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.Former AXA Agent Charged with Securities FraudRead the Press Release
The United States Attorney’s Office today announced the filing of a one-count information charging Dennis Wright with securities fraud. Wright, a former agent of the AXA Equitable Life Insurance Company (“AXA”), operated Wright Associates in Lewistown, Pennsylvania.
According to United States Attorney Peter Smith, the information alleges that from the early 1990’s through June 2012 Wright fraudulently induced AXA clients to liquidate securities and other assets based on false representations and promises that he would invest their monies and funds in what he purported to be “managed funds,” when, in fact, he never invested the funds, but instead deposited the client funds into his business operating account. The information alleges that as a result of these false and fraudulent representations and promises, Wright received funds, totaling approximately $1,533,416, from at least 30 AXA clients via account transfers, withdrawals, and other means.
Wright, a Lewistown resident, has agreed to plead guilty under the terms of a plea agreement filed with the information. If convicted of the securities fraud charge Wright, age 68, faces a maximum penalty of 25 years in prison, a fine of $1 million, and a supervised release term of five years.
Wright also is the subject of a parallel civil case filed today by the United States Securities and Exchange Commission in the United States District for the Middle District of Pennsylvania.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Securities and Exchange Commission. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Federal Court Shuts Down Florida Tax Return PreparerRead the Press Release
The U.S. District Court for the Southern District of Florida permanently barred Marvel Angelita Ebanks, a tax preparer who prepared returns in Palm Beach County, Florida, and her company, Marvelous Enterprises Inc., from preparing federal tax returns for others, the Justice Department announced today. A final judgment of permanent injunction was entered against Ebanks and her company by the court today.
The complaint alleged that Ebanks and her company prepared federal income tax returns for customers that claimed ficticious business expenses. In addition, Ebanks and her company prepared returns that claimed false or inflated education credits and child care credits, and other deductions and/or credits in order to unlawfully understate tax liabilities and generate larger than warranted refunds. Pursuant to the final judgment of permanent injunction, Ebanks and her company are permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns and amended returns.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fayetteville Man Sentenced to Serve over Twelve Years in Prison for Distribution of Crack CocaineRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 29, 2014, Dontez Flowers, 35, of Fayetteville, Tenn., was sentenced to serve 151 months in federal prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Flowers pleaded guilty in June 2014 to distribution of cocaine base, “crack.” Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
In the plea agreement on file with the U.S. District Court, Flowers admitted to selling five grams of crack cocaine to an individual working with law enforcement on one occasion in July 2013. He also tried to sell 20 grams of crack cocaine a few days later. Flowers admitted that he continued to sell crack cocaine even after the police confronted him.
The indictment and subsequent conviction of Flowers was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tennessee Bureau of Investigations, and Lincoln County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Detroit-Area Doctor and Three Others Indicted for Their Alleged Roles in $7 Million Health Care Fraud SchemeRead the Press Release
Four defendants, including a Detroit-area physician, were charged in a superseding indictment with a $7 million health care fraud conspiracy. Fifteen defendants have now been charged in this case, including seven who have pleaded guilty for their conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
The eight-count superseding indictment, unsealed today, charges defendants Dr. Kutub Mesiwala, 63, of Bloomfield Hills, Michigan, Jaweed Mohammed, 34, of Orland Park, Illinois, Mohammad Zubair Khan, 27, of West Bloomfield, Michigan, and Tousif Khan, 42, of Ypsilanti, Michigan, in connection with Medicare fraud involving unnecessary home health care and therapy services.
According to allegations in the indictment, Advance Home Health Care Services Inc. (Advance Home Health) and Perfect Home Health Care LLP (Perfect Home Health) purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the Detroit metropolitan area.
Dr. Mesiwala allegedly received kickbacks to refer Medicare beneficiaries to Advance Home Health and to falsely certify that the beneficiaries required home health care. Patient recruiters and office staff, including Tousif Khan, allegedly paid cash kickbacks to Medicare beneficiaries in exchange for their signing blank physical therapy records. Jaweed Mohammed, Mohammed Zubair Khan, and other co-conspirators then allegedly used those pre-signed blank physical therapy records to fabricate patient records for Advance Home Health and Perfect Home Health. Those records were used to support claims to Medicare when, in fact, no services were rendered.
The superseding indictment charges all four defendants with conspiracy to commit health care fraud, and charges Dr. Mesiwala and Tousif Khan with conspiracy to pay or receive health care kickbacks. It also charges Mohammad Zubair Khan, Jaweed Mohammed, and Tousif Khan with destruction of documents with the intent to obstruct the investigation. Additionally, Dr. Mesiwala was charged with two counts of health care fraud in relation to claims for reimbursement submitted to Medicare for visiting physician services that he purportedly rendered to patients in their Michigan homes while he was allegedly out of the country.
Between February 2009 and November 2013, Medicare paid Advance Home Health and Perfect Home Health more than $7 million as a result of these allegedly false and fraudulent claims. Fifteen defendants have been charged with participating in the health care fraud and kickback conspiracies, and seven of those defendants have entered guilty pleas. One of those defendants, Dr. Adelina Herrero, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan on Aug. 18, 2014, to three years in prison and ordered to pay $1,321,372 in restitution.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Patrick J. Hurford and Katharine A. Wagner and Special Trial Attorney Katie R. Fink of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Desmond Simpson of Wilmington Convicted of Hobb’s Act Robbery and Firearms Violation 924(c)Read the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle a jury convicted, DESMOND SIMPSON, 29, of Wilmington, for Robbery and Carrying and Brandishing a Firearm, during and in relation to a crime of violence.
SIMPSON was named in an Indictment filed on December 17, 2013.
According to the investigation and information presented in open court during the trial, on April 25, 2012, SIMPSON, robbed a Papa John’s delivery person and repeatedly beat the individual in the head with the butt of a handgun resulting in significant head injuries requiring numerous staples. SIMPSON was connected to the crime with DNA evidence.
At sentencing that will be scheduled at a later date, SIMPSON faces a maximum sentence of 20 years imprisonment for the Hobbs Act Robbery and not less than 7 years and up to life imprisonment for the 924(c) conviction.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson and Assistant United States Attorney Jane Jackson prosecuted the case. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Department of Justice Enters into Five Agreements to Ensure Small Businesses Provide People with Disabilities Access to Neighborhood Goods and ServicesRead the Press Release
The Justice Department today announced five settlement agreements under the Americans with Disabilities Act (ADA) to make businesses in upstate New York and Corpus Christi, Texas, accessible to people with disabilities.
The settlements are with Hamilton Initiative in Hamilton, New York; Glenwood Plaza in Oneida, New York; Alliance NY in Cazenovia, New York, Subway of Cazenovia in Cazenovia, New York, and Water Street Seafood Company in Corpus Christi, Texas. These businesses, including a strip mall and several restaurants, were investigated in conjunction with the department’s Project Civic Access, a Civil Rights Division initiative to ensure that cities, towns and counties throughout the country comply with the ADA. The investigation revealed that each business had made alterations after the effective date of the ADA, but had failed to make the altered areas accessible.
At each business, certain architectural elements were inaccessible to people with disabilities. All five businesses worked cooperatively with the department after architectural barriers to access were identified. The department and each business agreed to remedy the barriers in compliance with the 2010 ADA Standards for Accessible Design (2010 Standards) within certain timelines. Details on each settlement follow:
-
Hamilton Initiative owns and leases property to an eatery called the No. 10 Tavern.Under the agreement, the exterior entrance and restrooms will be modified to comply with the 2010 standards.
-
Glenwood Plaza is a strip mall in Oneida, New York.Under the agreement, the parking lot at the strip mall will be modified to include the required accessible parking spaces, compliant signage and access aisles.
-
Two settlement agreements were entered regarding Subway of Cazenovia sandwich shop. Alliance NY owns and leases property to Subway of Cazenovia and has agreed to renovate the exterior entrance to the restaurant to make it accessible to persons with mobility impairments.Subway of Cazenovia is the operator of the sandwich shop and has agreed to make modifications to the restroom in compliance with the 2010 Standards.
-
Water Street Seafood Company is a restaurant that has already started correcting accessibility barriers at its exterior entrance and restrooms.Under the agreement, the restaurant will continue its modifications to make the restaurant compliant with the 2010 standards.
“The Civil Rights Division of the Justice Department is committed to the full and fair enforcement of the Americans with Disabilities Act,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “While it is important to have equal access to larger venues such as hospitals and stadiums, it is equally important that people with disabilities be able to enjoy all types of goods and services in their own neighborhood. When a business alters its space, it is critical that those alterations be made accessible so that people with disabilities can enjoy access to restaurants and businesses and be fully integrated in their communities.”
The ADA protects individuals with disabilities from discrimination by public accommodations, such as restaurants and shopping malls, and requires that when such entities make alterations, they must do so accessibly to the maximum extent feasible. In addition, businesses have an ongoing obligation to remove architectural barriers to make their businesses accessible to persons with disabilities to the extent it is readily achievable to do so. It is “readily achievable” to remove an accessibility barrier if it is easily accomplishable without much difficulty or expense. The Department of Justice and Small Business Administration have provided an ADA Guide for Small Businesses describing these obligations, as well as tax credits and deductions available, at http://www.ada.gov//smbustxt.htm. People interested in finding out more about the ADA or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA Web site at www.ada.gov.
-
Department of Justice Awards Hiring Grants to Help Address Critical Law Enforcement NeedsRead the Press Release
Montgomery, Alabama - Yesterday the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced a funding award to the Alabama Law Enforcement Agency (ALEA) aimed at creating or protecting twenty-five law enforcement positions within the Department of Public Safety. Nearly $124 million will be awarded nationally, including $3,125,000 to ALEA over a three year period.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer, deputy, and trooper hires for three years.
“Our first priority is increasing the number of state troopers on the road. The troopers have been understaffed for a number of years due to budget cuts and restraints,” said Alabama Secretary of Law Enforcement Spencer Collier. “This grant will allow us to better serve and protect the citizens of Alabama by hiring additional state troopers.”
“The Department of Justice is proud to support the brave men and women of law enforcement that serve and protect our communities every day,” said U.S. Attorney George Beck Jr. from the Middle District of Alabama. “The U.S. Attorney’s Office is committed to reducing crime and increasing public safety. This funding will provide additional resources for law enforcement to develop and implement strategies to reduce violent crime, dismantle drug organizations, and save lives.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at cops.usdoj.gov.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Department of Justice Awards $2.1 Million in Grants to Three Nevada Agencies to Prevent School ViolenceRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), is pleased to announce that on Monday, Sept. 29, the U.S. Department of Justice awarded three grants totaling $2,125,000 to the North Las Vegas Police Department, the City of Elko, and the Elko County Sheriff’s Office for the hiring of 17 law enforcement officers.
The Justice Department announced the funding awards to the three agencies under the COPS Hiring Program, which provides funds directly to law enforcement agencies to hire or re-hire career law enforcement officers, and to increase their community policing capacity and crime prevention efforts. The program provides salaries and benefits for officer and deputy hires for three years. Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
Nearly $124 million in grants was awarded nationally under the hiring program, including the $2.1 million for the District of Nevada. Of that, $1.6 million was awarded to the North Las Vegas Police Department for the hiring of 13 officers, $375,000 was awarded to the Elko County Sheriff’s Office for the hiring of three officers, and $125,000 was awarded to the City of Elko for the hiring of one officer.
“The Department of Justice continues to support the efforts of law enforcement in Nevada,” said U.S. Attorney Bogden. “This program is specifically designed to advance public safety through community policing, including the hiring of school police officers or school resource officers. Bullying, stalking and other interpersonal crimes affect our children at an alarming rate, making these positions more important than ever.”
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Hiring Grants to Reduce Violence, Protect Schools in KansasRead the Press Release
KANSAS CITY, KAN. Today the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced funding awards to six law enforcement agencies in Kansas aimed at creating, and in some cases protecting, law enforcement positions. Nearly $124 million will be awarded nationally, including $704,755 in Kansas.
The list of this year’s grantees includes:
Bel Aire Police Dept., $114,971
Cherryvale Police Dept., $95,645
Derby Police Dept., $125,000
City of Iola, $119,139
Kansas State University, $125,000
Osawatomie Dept. of Public Safety, $125,000.“Our goal is to improve public safety and help strengthen relationships between the officers and the communities they serve,” said U.S. Attorney Barry Grissom.
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime and school safety.”Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Hiring Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
Grants Awarded To Hire School Resource Officers, Reduce Violence And
Address Other Critical Law Enforcement NeedsTAMPA, FL - The U.S. Department of Justice, Office of Community Oriented Policing Services (COPS), yesterday announced funding awards to 10 cities and counties in the Middle District of Florida. These grants, totaling over $7 million, are intended to create 57 law enforcement positions.
The list of this year’s grantees includes: Daytona Beach Police Department, DeLand Police Department, Hardee County Sheriff’s Office, Hillsborough County Sheriff’s Office, Jacksonville Sheriff’s Office, Longwood Police Department, Mount Dora Police Department, Polk County Sheriff’s Office, Sarasota Police Department, and the Starke Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local, and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“Community policing emphasizes strong partnerships between local law enforcement and the public it serves,” said U.S. Attorney A. Lee Bentley, III. “These partnerships develop creative ideas, build trust, and increase the effectiveness of law enforcement at all levels. Our Office is excited that ten of our local law enforcement partners will have additional funding to enhance community policing within their jurisdictions.”
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. Nearly $124 million will be awarded nationally.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products, including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Department of Justice Awards $1,875,00 to Nopd to Hire 15 Police OfficersRead the Press Release
U.S. Attorney Kenneth A. Polite and the U.S. Department of Justice, Office of Community Oriented Policing Services (“COPS”) today announced an award of $1,875,000 to the New Orleans Police Department. The award will assist in recruiting and hiring 15 law enforcement positions.
“This grant of $1,875,000 to the New Orleans Police Department underscores DOJ’s commitment to ensuring public safety in our local communities,” stated U.S. Attorney Polite. “This money is critical to reducing violent crime, not in select portions of the city, but in every New Orleans neighborhood. As U.S. Attorney, I will continue to fight for the necessary federal resources to support our region’s law enforcement efforts.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans. Nearly $124 million will be awarded nationally.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Conspirators Exiled to at Least 11 Years in Prison on Drug, Robbery and Gun ChargesRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow today sentenced Antonio Edwards, age 41, of Capitol Heights, Maryland, to 20 years in prison, followed by eight years of supervised release; and sentenced co-defendants Shane Elliott Hare, age 27, of Hyattsville, Maryland, to 11 years in prison, and Gregory Antoine Williams, age 28, of Washington, D.C., to 150 months in prison, each followed by five years of supervised release. Edwards, Hare, and Williams were convicted at trial on July 27, 2014 of conspiracy to interfere with commerce by robbery; conspiracy to possess with the intent to distribute cocaine; conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking; and carry and use of firearms in furtherance of a crime of violence and drug trafficking. Edwards was also convicted of possession of ammunition by a felon.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Maryland Attorney General Douglas F. Gansler.
According to the evidence presented at their nine-day trial, from May 9 to 16, 2013, Shane Hare, Antonio Edwards, Gregory Williams and co-defendant Marvin Bowden, conspired to rob drug dealers operating in Baltimore, Maryland, and sell over five kilograms of cocaine, using firearms. Witnesses testified that on May 9, 2013, the co-conspirators were introduced to an undercover agent who proposed robbing a stash house. The conspirators agreed to commit the robbery and intended to resell the stolen narcotics to customers in the Prince George’s County and Washington Metropolitan area.
According to trial testimony, on May 14, 2013, the conspirators met again with the undercover agent and outlined their plan to carry guns and execute the robbery soon after the undercover agent entered the stash house. The conspirators told the undercover agent that they would wear black clothing with police insignias as disguises and yell “Police” upon entering. On May 16th, the conspirators left the hotel room they used to prepare for the robbery and drove to the location where they planned to commit the robbery. The conspirators were arrested, and law enforcement seized two loaded pistols from under and in the car used by the conspirators.
Co-conspirator Marvin Bowden, Jr., age 31, of Colmar Manor, Maryland, was sentenced on July 21, 2014, to 10 years in prison for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and for conspiracy to carry and use firearms in furtherance of a crime of violence and drug trafficking.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Jennifer Sykes, a prosecutor with the Department of Justice Criminal Division, who prosecuted the case.Choudrant Man Pleads Guilty to Distributing MethRead the Press Release
MONROE, La. –A Choudrant man pleaded guilty last week to distributing methamphetamine from his home, U.S.Attorney Stephanie A. Finley announced.
Christopher Takewell, 38, of Choudrant, La., entered a guilty plea last week before U.S. District Judge Robert G. James, to one count of distribution of methamphetamine. According to evidence presented at the guilty plea, law enforcement agencies conducted a controlled purchase of 104.65 grams of methamphetamine in January of 2014 from Takewell at his home. The residence was searched on January 24, 2014, and the $6,250 used in the controlled purchase was recovered.
Takewell faces 10 years to life in prison, at least five years of supervised release, and a $10 million fine. A sentencing date of January 5, 2015 was set.
The U.S. Drug Enforcement Administration (DEA) Monroe Field Office, the Lincoln Parish Narcotics Enforcement Team and the Metro Narcotics Unit based in Monroe conducted this investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
California Man Convicted of ConcealingRead the Press Release
THUNDERBIRD IN MONTANA BANKRUPTCY CASE
MISSOULA - Following a two-day trial for concealing a 1957 Thunderbird and another vehicle from a bankruptcy trustee, Timothy James Pulliam, 65, of La Mesa, California, was convicted by a Montana jury of concealing property and making false statements under oath related to his bankruptcy proceeding. U.S. District Judge Donald Molloy presided over the trial. Pulliam now faces a maximum five years in prison on each count, a $250,000 fine, and up to three years of supervised release.
Evidence presented at trial by Assistant United States Attorney Chad Spraker showed that Pulliam and his wife filed for bankruptcy in April 2010. Pulliam planned to sell the 1957 Thunderbird in order to fund a Chapter 11 bankruptcy. He also listed the Thunderbird in his bankruptcy schedules, which are a listing of a debtor's assets at the time of filing for bankruptcy. At the beginning of the bankruptcy, Pulliam stated it was his plan to sell the car to raise enough money to finish a house he was building in Corvallis, Montana. Pulliam's bankruptcy schedules listed car's value at $80,000 and the trailer at $10,000.
In October 2010, a Chapter 7 Bankruptcy Trustee traveled to Pulliam's Corvallis residence and saw the Thunderbird parked in a garage connected to the guesthouse. Sometime between October 4th and October 9th, 2010, the Thunderbird and trailer disappeared. Pulliam stated that he had no idea what happened to the Thunderbird. In later proceedings, Pulliam changed his story and claimed he had given the car to his son in 2005. Pulliam then falsely testified under oath that he thought his son took the car and trailer, but he did not know that for certain.
Pulliam later admitted that he had lied under oath and stated that he had called his son and told him to come get the car. Evidence presented at trial showed that in fact Pulliam hid the car shortly after the Chapter 7 Trustee visited Pulliam's residence. Pulliam's sentencing is set for January 23, 2014, in Missoula, Montana.
The case was investigated by the Federal Bureau of Investigations and the Internal Revenue Service, Criminal Investigation.
Bucks County Woman Charged with Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, is charged by information, filed yesterday, with embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return, announced United States Attorney Zane David Memeger. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She is charged with mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. According to the information, between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. It is alleged that Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses.
It is further alleged that Baranek willfully made and subscribed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
If convicted the defendant faces a maximum possible sentence of 23 years’ imprisonment, a one-year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An indictment, information or criminal complaint is an accusation and a defendant is presumed innocent unless and until proven guilty.
Click here to view the information.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bank Robbery Defendant Sentenced to Federal PrisonRead the Press Release
KANSAS CITY, KAN. A defendant in a bank robbery in Lanagan, Mo., was sentenced Tuesday to two years in federal prison, U.S. Attorney Barry Grissom said.
Stephen Hudson, 34, pleaded guilty to one count of attempted bank robbery. In his plea, he admitted that on July 2, 2012, he drove co-defendant Daniel Lee Waddell to Lanagan, Mo., for the purpose of robbing the Corner Stone Bank.
Co-defendant Daniel Lee Waddell was sentenced to 210 months in federal prison for the robbery at the Corner Stone Bank, as well as another robbery March 5, 2013, at the Citizens State Bank in Kincaid, Kan.
Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI, Assistant U.S. Attorney Jabari Wamble and Missouri law enforcement agencies for their work on the case.
Baltimore Man Pleads Guilty to Sex Trafficking Conspiracy and Is Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion and was sentenced by U.S. District Judge James K. Bredar to 12 years in prison, followed by five years of supervised release. Judge Bredar ordered that upon his release from prison, Foote must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to Foote’s plea agreement, from September through November 2012, Foote used social media sites to persuade and entice females to work for him in his prostitution business. For example, in September 2012, Foote contacted an 18 year old woman living in Florida (Jane Doe 1) on Facebook, using a female online identity he created using the name “Cash Treasure.” Jane Doe 1 had dropped out of high school and was trying to get back into school or find employment. Foote, using the “Cash Treasure” persona, told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” stating that he could help Jane Doe 1 to get back into high school and get a diploma, but it would require her to move to Baltimore. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.
Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where he had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Foote was running a prostitution business and the he expected Jane Doe 1 to work for him, engaging in sex with men for money for Foote’s benefit. At first Jane Doe 1 refused, but eventually she agreed and began having sex with men for money, with all of the proceeds going to Foote.
During this time, Foote was using internet websites to advertise the women, including “Malaysia,” and “Mercedez,” who was Jane Doe 1, as available for prostitution. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit called the number on one of the advertisements to schedule a “date” with “Malaysia.” The undercover detective met Malaysia at the agreed upon time and place. Malaysia was arrested. Officers located and arrested Jane Doe 1 in the hallway. She was holding a baby monitor which was receiving a live video of the interior of Malaysia’s room, where police had conducted the undercover operation. Officers also located and attempted to arrest Foote but he struggled and ran away.
Foote was arrested on May 16, 2013, after a Baltimore County Police officer conducted a traffic stop of the vehicle in which Foote was a passenger. In addition to Foote and the driver, there was an 18 year old female, Jane Doe 2, riding in the vehicle. Jane Doe 2 was listed in police records as a possible runaway. Foote and the driver were on their way back to a motel after taking Jane Doe 2 on an “out-call,” taking her to meet a man who paid to have sex with her. Two other females were located at the motel who worked as prostitutes for Foote and the driver. Jane Doe 2 and the other two females were advertised for prostitution on an internet website, and stated that they gave their earnings to Foote, the driver and another person.
Foote admitted that Jane Doe 2 began working for him in April 2013 and had approximately 100 “dates” with men for money that was provided to Foote. In May 2013, Jane Doe 2 tried to leave the motel after refusing a request from one of the men. Foote pursued her into the hallway and stairwell and physically fought with Jane Doe 2, returning her to the motel room by physical force.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
ATF, Firearms Industry Offer Reward in Indianapolis Firearms TheftRead the Press Release
INDIANAPOLIS – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the National Shooting Sports Foundation (NSSF) – the trade association for the firearms industry – have announced a reward for information leading to the arrest and conviction of those responsible for the theft of firearms from Wide Open Arms, Inc., a federal firearms licensee in Indianapolis, Ind.
ATF is offering a reward of up to $5,000, which will be matched by the NSSF for a total possible reward of $10,000.
On Sunday, Sept. 28, 2014, a person or persons drove a vehicle into the storefront of Wide Open Arms, located at 3722 East Raymond St., Indianapolis, Ind. Numerous handguns were reported stolen from the scene. ATF, the Indianapolis Metropolitan Police Department, and the Indiana State Police are investigating.
Anyone having information about the burglary should contact ATF at 1-800-ATF-GUNS (800-283-4867). All calls will be kept confidential.
Callers may also provide information anonymously by contacting the following offices:
ATF- Indianapolis I Field Office at (317) 287-3500
Crime Stoppers at (317) 262-TIPSThis reward is part of a larger national cooperative initiative between the NSSF and ATF in which NSSF matches ATF rewards in cases involving the theft of firearms from federally licensed retailers. ATF works closely with the members of the firearms industry to curb the criminal acquisition and misuse of firearms.
More information about ATF and its programs is available at www.atf.gov or visit ATF on Twitter @ATFHQ.
13 Individuals Charged with Theft of Public Money and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. – A federal grand jury in the District of Puerto Rico returned seven indictments against 13 defendants charged with theft of public money and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today Internal Revenue Service (IRS) agents and with the assistance of the task force officers of the Puerto Rico Police Department (PRPD), the Puerto Rico Treasury Department, and the Puerto Rico Special Investigations Bureau executed the arrest.
Out of the 13 defendants, nine are charged with conspiracy to unjustly enrich themselves by fraudulently obtaining United States Department of Treasury tax refunds to which they were not entitled. Members of the conspiracy would submit false and fraudulent federal income tax returns to the United States Department of Treasury using names and social security numbers of individuals without their knowledge or authority. They designated mailing addresses where the tax refunds would be sent, but these were not the true and correct mailing addresses of the individuals whose identities were used to file the false and fraudulent federal income tax returns. Based upon these false and fraudulent income tax returns, the United States Department of Treasury issued income tax refunds, unbeknownst to the individuals whose names and social security account numbers were fraudulently used, to the members of the conspiracy by mailing U.S. Treasury checks to the mailing addresses designated in the false and fraudulent federal tax returns. The members of the conspiracy would forge the endorsement of the individual whose name was on each U.S. Treasury check as the recipient of the refund. They would then negotiate and cause the checks to be deposited in exchange for cash.
Upon conviction of one or more of the violations of 18 USC § 641 set forth in the indictments the defendants shall forfeit to the United States of America pursuant to 18 USC § 981 (a) (1) (C) and 28 USC § 2461 (c), any property , real or personal which constitutes or is derived from profits traceable to the offense. The property to be forfeited includes, but is not limited to, the amount of $1,184,937.52.
“Today’s arrests demonstrate our commitment to investigate and prosecute those who steal the identities of unsuspecting victims in order to enrich themselves at the expense of the federal government.” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“Identity theft remains a top priority for the Internal Revenue Service. The indictments announced today send a clear message that stealing identities to file tax returns and receive fraudulent refunds will not be tolerated. The individuals who commit these crimes will be brought to justice. We are committed to safeguarding the U.S. Treasury and the public against stolen identity refund fraud,” stated IRS-CI Acting Special Agent in Charge Donnell Young.
Assistant U.S. Attorney Justin Martin is in charge of the prosecution of the case. If convicted, the defendants face a sentence of up to 10 years of imprisonment under 18 U.S.C. § 641, a minimum sentence of 2 years of imprisonment under 18 U.S.C. § 1028A(c) and a sentence of up to 5 years of imprisonment under 18 U.S.C. § 371. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Monday 29 September 2014
Visalia Doctor Sentenced for Illegally Dispensing OxycodoneRead the Press Release
FRESNO, Calif. — Dr. Terrill Eugene Brown, 61, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown was ordered to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.
According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements that would have alerted the Treasury Department to the large cash transactions.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.
“Deaths from prescription drug abuse have been increasing dramatically in recent years,” said U.S. Attorney Wagner. “Studies have shown that a significant portion of chronic prescription drug abusers obtain their drugs from doctors. A few doctors like Dr. Brown, who deliberately over-prescribe for profit, are fueling a deadly epidemic.”
This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Kathleen A. Servatius and Laurel J. Montoya, and Fresno County Deputy District Attorney Nathan Lambert who was sworn in as a Special Assistant U.S. Attorney for the case.
This case was brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the IRS-Criminal Investigation, the DEA, and the U.S. Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
In a related case, on April 11, 2013, a federal grand jury charged 13 defendants for a scheme where they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor and paid them for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.
Eight defendants in that case pleaded guilty and have been sentenced as follows:
David Ruem, of Tacoma, Wash.; sentenced to 10 years and one month in prison
Phary Chim, of Kent, Wash.; sentenced to four years and three months in prison;
Sdey Chim, of Modesto; sentenced to three years and 10 months in prison;
Chanrath Yath, of Modesto; sentenced to three years and four months in prison;
Phally Thach, of Modesto; sentenced to two and a half years in prison;
Raeb Chou, of Modesto; sentenced to two years in prison;
Cindy Doeum, of Kent, Wash.; sentenced to three years of probation; and
Chantha Chim, of Murietta; sentenced to three years of probation.Another defendant has pleaded guilty and is awaiting sentencing. The charges against the remaining four defendants are pending and are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Utah Man Charged with Assisting Lehigh County Doctor in Defrauding Government AgenciesRead the Press Release
Robert G. Wray, 75, of Torrey, Utah, was arrested Friday on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service, announced United States Attorney Zane David Memeger. The indictment alleges that the fraud scheme amounted to hundreds of thousands of dollars. Wray is charged with one count of conspiracy, thirty counts of wire fraud, and one count of bankruptcy fraud.
According to the indictment, Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” who is not subject to federal laws, including laws regarding personal income taxation. It is further alleged that Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel, charged separately, is scheduled for trial in December 2014.
If convicted of all charges, Wray faces a maximum possible sentence of 610 years’ in prison, three years of supervised release, a fine of up to $8 million, and a $3,200 special assessment.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Individuals Distributing Methamphetamine in Marin County Pleaded Guilty to Drug TraffickingRead the Press Release
SAN FRANCISCO – Miguel Macias aka “Flaco” pleaded guilty today and Alejandro Miranda pleaded guilty on Sept. 24, 2014, to distribution and possession with the intent to distribute methamphetamine and conspiracy to launder money, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreements, Miranda admitted to selling four ounces of methamphetamine to an undercover officer (UC). On Feb. 26, 2013, Miranda met with the UC in a parking lot in San Rafael. He gave the UC the drugs and the UC gave him the money. On Dec. 6, 2013, Macias sold methamphetamine to someone in the parking lot of the Home Depot store in San Rafael for which he received $5,000 for the drugs. On Sept. 21, 2013, Miranda helped Macias wire transfer money to Mexico. Miranda contacted the wire remitters by telephone to arrange the wire transfers. Macias then sent the wires under different sender names and different recipient names. This method was used to conceal the nature, source, and ownership of the funds. According to court documents the drug trafficking took place through Azteca Market in San Rafael.
Macias, 24, of Daly City, and Miranda, 28, of San Pablo, were both charged with distribution and possession with the intent to distribute methamphetamine and conspiracy to launder money. They each pleaded guilty to both counts.
Miranda and Macias are scheduled to be sentenced on Dec. 17, 2014, at 10:00 a.m., before the Honorable Charles R. Breyer, United States District Court Judge, in San Francisco.
The maximum statutory penalties for distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. § 841, is life in prison, with a minimum term of 10 years, a $10,000,000 fine, and denial of federal benefits for five years. The maximum statutory penalties for conspiracy to launder money, in violation of U.S.C. § 1956(h), (b)(1)(A), is 20 years in prison and a fine of $500,00 or twice the value of the property involved in the transaction. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Marin County Major Crimes Task Force, the DEA and the IRS, Criminal Investigation.
(Macias indictment )
(Macias superseding information )
(Miranda indictment )
(Miranda superseding information )
Two Florida Residents Charged in Investment SchemeRead the Press Release
Eric Mathe 42, of North Bay Village, Florida and Ashif Jiwa 55, of Miami, Florida were charged in by indictment, unsealed today, with wire fraud in an investment scheme, announced United States Attorney Zane David Memeger. The indictment alleges that between February 2009 and February 2010, Mathe and Jiwa defrauded investors located in the Eastern District of Pennsylvania and elsewhere, by making false representations of ownership of Federal Communication Commission (FCC) Low Powered Television (LPTV) construction permits and licenses to induce investments in Mathe’s now defunct Florida based company Vision Broadcast Network (VBN). Mathe and Jiwa are alleged to have defrauded investors out of at least $1,688,150.
If convicted, the defendants face a maximum sentence of 20 years= imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.
The Securities and Exchange Commission has filed a related civil action against Mathe and Jiwa in Miami, Florida.
This case was investigated by the Federal Bureau of Investigation with assistance from the Miami Regional Office of the United States Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Twin Falls Man Sentenced as Armed Career CriminalRead the Press Release
BOISE – Paul Edward Parnell, 47, of Twin Falls, Idaho, was sentenced today to 188 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Parnell to serve four years of supervised release, pay a $1,000 fine, and forfeit the firearm and ammunition he illegally possessed. He was found guilty after a bench trial on August 19, 2014.
According to court records, Twin Falls Police officers served a search warrant on Parnell’s residence and located a sawed-off shotgun in the defendant’s bedroom. Parnell has an extensive criminal history that includes seven prior felony convictions. Because Parnell had previously been convicted of at least three felony crimes of violence, he faced a mandatory minimum sentence of 15 years to life under the Armed Career Criminal Act. Parnell was previously convicted in Massachusetts of armed robbery, assault and battery with a dangerous weapon, and assault with a weapon. He had also been convicted of a felony domestic violence offense in California.
The case was investigated by the Twin Falls Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Toyoda Gosei Co. Ltd. Agrees to Plead Guilty for Fixing Prices and Rigging Bids on Automobile Parts Installed in U.S. CarsRead the Press Release
Toyoda Gosei Co. Ltd., an automotive parts manufacturer based in Aichi, Japan, has agreed to plead guilty and to pay a $26 million criminal fine for its role in conspiracies to fix prices and rig bids for automotive hoses, airbags and steering wheels sold to automobile manufacturers, the Department of Justice announced today.
According to a two-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Toyoda Gosei conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers (collectively Toyota), in the United States; and conspired to fix the prices of automotive airbags and steering wheels sold to Toyota and Fuji Heavy Industries Ltd. and certain of its subsidiaries, affiliates and suppliers, and certain of their subsidiaries, affiliates and suppliers (collectively Subaru), in the United States and elsewhere. In addition to the criminal fine, Toyoda Gosei has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“When purchasing an automobile, American consumers should feel confident that the sticker price is based on fair market costs to manufacture the vehicle,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division will continue to prosecute cases in the auto parts industry to ensure fair and competitive prices are maintained.”
Toyoda Gosei and its co–conspirators, according to the charges, conspired through meetings and conversations in which they discussed and agreed upon bids and price quotations to be submitted to certain automakers and to allocate the supply of the products to those automakers. In furtherance of the agreements, Toyoda Gosei sold certain automotive hoses at noncompetitive prices to Toyota in the United States, and sold airbags and steering wheels at noncompetitive prices to Toyota and Subaru in the United States and elsewhere. Toyoda Gosei’s involvement in the automotive hoses conspiracy lasted from at least as early as February 2004 until at least September 2010 and its involvement in the automotive airbags and steering wheels conspiracy lasted from at least as early as September 2003 until at least September 2010.
Toyoda Gosei manufactures and sells a variety of automotive parts, including certain automotive hoses, airbags and steering wheels. The charges against Toyoda Gosei are the latest in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to automotive hoses sold to automobile manufacturers.
To date, 43 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Twenty-nine companies, including Toyoda Gosei, have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.
Toyoda Gosei is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty for corporations of $100 million for each violation. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, Lima Resident Agency, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.
Surf City Resident and Captain of “the Raven” Pleads Guilty to Violating the Clean Water Act and the Rivers and Harbors ActRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, before Senior United States District Judge James C. Fox, david wayne luther , 63, of Surf City, North Carolina, entered a guilty plea to violating the Clean Water Act and the Rivers and Harbors Act.
According to information in the public record, on July 29, 2012, officers with the North Carolina Marine Patrol responded to a complaint of dredging in waters near Surf City, North Carolina. North Carolina Marine Patrol officers determined that LUTHER was "prop washing" with the M/V The Raven. The officers ordered LUTHER to cease and desist dredging activities. Approximately three hours later, on July 29, 2012, North Carolina Marine Patrol received another complaint of dredging activity by UTHER. On July 30, 2012, a Coastal Area Management Act (CAMA) representative took measurements at the violation site and confirmed unauthorized dredging activity.
“The dredging of federal waterways is strictly regulated to protect water quality and wildlife,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “The defendant repeatedly dredged material in an environmentally sensitive area that has been designated an essential fish habitat. EPA will hold violators accountable as part of its mission to protect human health and the environment.”
On August 10, 2012, CAMA issued a Notice of Violation and Request to Cease Unauthorized Development to Captain David LUTHER. A copy of the Notice was hand delivered to LUTHER on August 14, 2012. During the morning of August 14, 2012, CAMA received an anonymous complaint alleging dredging activity during the night time hours involving the M/V The Raven at the violation site. During the afternoon of August 14, 2012, a multi-agency site visit confirmed additional dredging activity at the original violation site. The violation site was determined to be a Primary Nursery Area for oysters.
The maximum penalty that LUTHER faces at sentencing for both counts is a total of two years imprisonment, and a maximum total fine of $200,000. Pursuant to his plea agreement, LUTHER has also agreed to purchase .21 acres of coastal wetland restoration in order to compensate for impacts to wetlands and other jurisdictional waters impacted from his criminal conduct prior to sentencing hearing. If he fails to make the purchase, LUTHER has agreed not to contest a $50,000 additional fine.
The criminal investigation was conducted by the EPA-CID, the North Carolina State Bureau of Investigation, the U.S. Army Corps of Engineers, and North Carolina Marine Patrol. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Social Worker Found Guilty by a Federal Jury of Defrauding Blue Cross Blue ShieldRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury in Buffalo has convicted Nina Jafari, a licensed clinical social worker, 63, of Amherst, N.Y., of four counts of health care fraud. The defendant faces a maximum penalty of 10 years in prison, a fine of $250,000 or both when sentenced.
“One of the reasons for the high cost of health care in this country is fraud,” said U.S. Attorney Hochul. “Thanks to today’s convictions, a woman who abused her position as a health care provider to illegally enrich herself will no longer be able to run up costs for the rest of the public.”
Assistant U.S. Attorneys Michael DiGiacomo and Aaron J. Mango, who handled the prosecution of the case, stated that the defendant defrauded Blue Cross Blue Shield of Western New York. Jafari submitted reimbursement claim forms to the insurance provider for services that were not rendered. For example, a witness for the Government testified that the defendant submitted claim forms for both he and his wife who were not even patients of Jafarai. The defendant received payment for 80 minute sessions for both the husband and wife.
The Government’s evidence also included tape recorded conversations between the defendant and a patient. In those conversations, Jafari instructed the patient not to share any information with Blue Cross Blue Shield regarding dates of service.
The amount that the defendant defrauded the insurance carrier totaled approximately $125,000.
The verdict is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Health Care Fraud Task Force.
Sentencing is scheduled for December 5, 2014 at 2:00 p.m. in Buffalo before Judge Elizabeth A. Wolford who presided over the trial of the case.Seven Western Washington Jurisdictions Awarded DOJ Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
WASHINGTON, DC—Today the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced funding awards to seven cities and counties in the Western District of Washington, aimed at creating, and in some cases protecting, 33 law enforcement positions. Nearly $121 million will be awarded nationally, including $6.2 million for Western Washington.
“This essential program will put more officers on our streets and in our schools to improve community safety,” said U.S. Attorney Jenny A. Durkan. “It was a competitive process for grants, and today’s announcement is a tribute to these departments who demonstrated how they will serve their communities.”
The Seattle Police Department and Tacoma Police Department each received funding for ten new officers. Auburn is funded for five officers, Federal Way four officer and the cities of Fife and Aberdeen one officer each. The Skagit County Sheriff’s Department was awarded funding for two officers.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Serial Armed Robber Sentenced to 32 Years in Federal PrisonRead the Press Release
ATLANTA - Artavius Brown has been sentenced to 32 years in prison for his use of a firearm during the commission of multiple armed robberies.
“Brown terrorized our community and put the lives of many innocent people at risk,” said United States Attorney Sally Quillian Yates. “This crime spree was brought to an end through the coordinated efforts of our state and federal law enforcement partners. Violent criminals should understand that in our district, significant federal penalties await them.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Brown to thirty two years in federal prison for his extensive and violent crime spree illustrates that there is no tolerance for those who show a total and repeated disregard for law and order. Because of the lengthy sentences available for these types of offenders in the federal system and also noting that there is no parole in the federal system, it is important for law enforcement to consider federal prosecution in these types of cases.”
According to United States Attorney Yates, the charges, and other information presented in court: During a five-month crime spree, that spanned four counties in the Atlanta, Ga., area, Brown committed 24 armed robberies of Family Dollar and Dollar General stores and one armed robbery of a PNC Bank – often committing multiple robberies on the same day:
Date
Business
Address
2/18/2013
Family Dollar
3855 Lawrenceville Hwy., Tucker, Ga.
2/21/2013
Family Dollar
319 N. Stone Mountain-Lithonia Road,
Stone Mountain, Ga.2/25/2013
Dollar General
6633 Covington Highway, Lithonia, Ga.
2/25/2013
Family Dollar
4787 Covington Highway, Decatur, Ga.
3/4/2013
Dollar General
5570 Lawrenceville Highway, Lilburn, Ga.
5/1/2013
Family Dollar
3590 Panola Road, Lithonia, Ga.
5/1/2013
Dollar General
2552 Wesley Chapel Road, Decatur, Ga.
5/9/2013
Family Dollar
7184 Rockbridge Rd., Stone Mountain, Ga.
5/9/2013
Dollar General
4312 Chamblee Tucker Road, Atlanta, Ga.
5/9/2013
Family Dollar
4624 Jimmy Carter Blvd., Norcross, Ga.
5/14/2013
Dollar General
4351 Hugh Howell Road, Tucker, Ga.
5/17/2013
Dollar General
5610 Singleton Road, Norcross, Ga.
5/23/2013
Dollar General
3900 Glenwood Road, Decatur, Ga.
5/26/2013
Family Dollar
3500 Martin Luther King Dr., Atlanta, Ga.
5/28/2013
Family Dollar
1400 Moreland Avenue, Atlanta, Ga.
5/29/2013
Family Dollar
5403 Covington Highway, Decatur, Ga.
5/30/2013
Family Dollar
1455 Pleasant Hill Rd., Lawrenceville, Ga.
5/31/2013
Dollar General
2846 Lavista Road, Decatur, Ga.
5/31/2013
Dollar General
1500 Pleasant Hill Road, Duluth, Ga.
6/2/2013
Family Dollar
807 Cascade Road, Atlanta, Ga.
6/6/2013
Family Dollar
5279 Lawrenceville Highway, Lilburn, Ga.
6/6/2013
Family Dollar
6928 Main Street, Lithonia, Ga.
6/11/2013
Dollar General
1910 Jodeco Road, Stockbridge, Ga.
6/12/2013
Dollar General
1005 Brentwood Parkway, Stockbridge, Ga.
6/21/2013
PNC Bank
2355 Main Street, Tucker, Ga.
Brown, 24, of Atlanta, Ga., was sentenced by U.S. District Judge William S. Duffey, Jr., to 32 years in prison to be followed by five years of supervised release. He was ordered to pay restitution in the amount of $4,509.35.
Brown was convicted of these charges on March 19, 2014, after pleading guilty to a criminal information that charged him with one count of brandishing a firearm during a crime of violence (a Hobbs Act robbery) that occurred on May 26, 2013, and one count of brandishing a firearm during a crime of violence (armed bank robbery) that occurred on June 21, 2013. Conviction on the first count carried a mandatory minimum prison term of seven years, and conviction on the second count carried a mandatory minimum prison term of 25 years, to run consecutive to the seven year term of imprisonment.
This case was investigated by the Federal Bureau of Investigation, the DeKalb County Police Department, the Atlanta Police Department, the Gwinnett County Police Department, the City of Lithonia Police Department, and the City of Lilburn Police Department.
Assistant United States Attorneys Angela M. Garland and John S. Ghose prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Sentencing in $2.9 Million Stolen Identity Tax ScamRead the Press Release
Grand Rapids businessman admits forging endorsements on $750,000 of US Treasury Checks
GRAND RAPIDS, MICHIGAN – Mateo Velasquez-Garcia, of Grand Rapids, Michigan, was sentenced to 48months’ incarceration and three years of supervised release for his convictions on one count of Forgery of U.S. Treasury Checks and one count of Illegal Re-entry by an Alien, U.S. Attorney Patrick A. Miles, Jr. announced today. Acting Special Agent in Charge Jarod Koopman, Internal Revenue Service Criminal Investigation, and Special Agent in Charge Marlon V. Miller of Homeland Security joined U.S. Attorney Miles in the announcement.
Velasquez-Garcia operated a grocery store located at 1814 S. Division Avenue, Grand Rapids, Michigan. An investigation revealed that $2.9 million dollars’ worth of fraudulently obtained federal tax refund checks were deposited into the bank account for the Tienda La Nueva Esperanza grocery store during the years 2011 to 2012. Velasquez-Garcia admitted to federal agents that he personally placed false endorsements on the back of 115 of the U.S. Treasury checks, which were payable to third parties. The checks totaled $750,000.
Velasquez-Garcia is also an alien. He was previously removed from the U.S. and has been found to be in the U.S. without the proper consent of the Attorney General or the Secretary of Homeland Security.
The investigation of this case was conducted by Special Agents of the Homeland Security Investigation and IRS Criminal Investigation.
END
Saginaw Resident Found GuiltyOf Armed Drug TraffickingRead the Press Release
A Saginaw man was convicted Friday of armed drug trafficking after a federal jury trial in Bay City, Michigan, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Steven Bogdalek, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The jury found Deondrai Allon Tippins, 41, guilty after a four-day trial before U.S. District Judge Thomas L. Ludington. Tippins was convicted of distribution of cocaine base, possession with intent to distribute cocaine base and heroin, carrying a firearm during a drug trafficking crime and felon in possession of a firearm.
The convictions follow an investigation conducted by the Bay Area Narcotics Enforcement Team "BAYANET") and the Alcohol, Tobacco and Firearms (ATF). According to evidence presented at trial, Tippins distributed drugs out of his residence while carrying a firearm. After his arrest, Tippins threatened to injure a confidential informant.
"We are using federal resources to make our neighborhoods safer by removing armed drug dealers," McQuade said.
The case was prosecuted by the Bay City branch of the U.S. Attorney's Office for the Eastern District of Michigan.
Repeat Offender and Accomplice Sentenced for Sex Trafficking of A Minor from West AfricaRead the Press Release
ATLANTA - Steven E. Thompson has been sentenced to 25 years for sex trafficking of a minor by threats of force, fraud and coercion, conspiring to do the same, and inducing adult women to travel interstate for prostitution. His accomplice, Tierra Waters, has been sentenced to eight years for conspiracy to engage in sex trafficking of a minor.
“These defendants exploited a 17-year-old girl from West Africa who desperately needed a place to live,” said United States Attorney Sally Quillian Yates. “The pair coerced the minor into engaging in prostitution at hotels and residences in Atlanta. Sex trafficking has no place in our society. And those who exploit vulnerable children in this way will face the kind of lengthy prison sentences that the defendants justly received today.”
“Like many of the young women we see exploited by sex traffickers in our investigations, this child was vulnerable and in need of help when she fell victim to this predator,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “Make no mistake, it was no chance encounter that brought this child into contact with the defendants. Sex traffickers are constantly on the lookout for vulnerable women and children they can exploit for their so-called ‘escort’ businesses. As these defendants have learned, law enforcement agencies like HSI and GBI are constantly on the lookout for these abusive predators and will hold them accountable for their heartless crimes.”
“Protecting children is a top priority for the GBI. We will continue to work in partnership with the U.S. Attorney’s Office to identify, investigate, and assist in the prosecution of individuals who have exploited children. It is imperative for law enforcement to protect those who cannot protect themselves,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to United States Attorney Yates, the charges and other information presented in court: Between April and June 2011, Thompson, a convicted felon who used the nickname “Silk,” advertised a 17-year-old refugee from Sierra Leone, West Africa for prostitution on the website Backpage.com, falsely listing her as ages 19 and 20 years. When the juvenile met Thompson and Waters, she was living in the United States without her parents; relying on relatives and friends for housing and support; and frequently homeless. In February 2011, Clayton County, Ga., Juvenile Court declared her a deprived child and placed her in a temporary shelter. Her grandmother took custody of her, but soon left the country, leaving the minor to fend for herself.
In April 2011, Thompson and Waters offered to allow the minor to live with them while she waited to enter the Job Corps. After living with Thompson and Waters only a few weeks, the defendants told the minor that she must have sex with men to earn money or leave their condominium. During this time, the juvenile saw Thompson verbally and physically abuse Waters, who worked as a prostitute for Thompson. Thompson also forced the minor to have sex with him on more than one occasion. Thompson and Waters transported the minor to the various locations where they coerced her into engaging in prostitution, and kept all her earnings. Thompson and Waters also angrily confronted the juvenile after discovering that she was avoiding calls from customers responding to the Backpage.com ads.
A witness who met the minor through the Backpage.com ads agreed to cooperate in the investigation. According to the witness, he was initially unaware that the girl was underage. But after the witness engaged in a commercial sex act with the minor, he began receiving threatening text messages from Thompson. In the text messages, Thompson disclosed that the girl was a minor and attempted to extort money from the witness.
In addition to the minor victim, Thompson also advertised two adult women for prostitution in Internet ads: A.M. from Washington, and F.F. from Alabama. Thompson met the women on the Internet and persuaded them to travel to Atlanta to work as prostitutes for him. Between March and August 2011, Thompson induced both women to travel interstate for that purpose.
Thompson, 44, of Atlanta, Ga., a repeat offender, having been previously convicted of federal offenses involving counterfeiting currency and being a felon in possession of a firearm, was sentenced to 25 years in federal prison, to be followed by ten years of supervised release. Thompson was convicted on June 25, 2014, of conspiracy to commit, and commission of, sex trafficking of a minor, and inducing adult women to travel interstate for prostitution, following a jury trial. Thompson must register as sex offender as a condition of his supervised release.
Waters, 30, of Atlanta, Ga., pleaded guilty on July 25, 2013, to conspiracy to commit sex trafficking of a minor and was sentenced to eight years in federal prison, to be followed by five years of supervised release.
This case was investigated by Homeland Security Investigations-Immigration and Customs Enforcement, and the Georgia Bureau of Investigation.
Assistant United States Attorneys Susan Coppedge and Leslie J. Abrams prosecuted the case.This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Rapid City Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on September 23, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
John Miller, age 25, was sentenced to 3 years in custody, 36 months of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Miller was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
The conviction stemmed from Miller responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Miller believed to be associated with a 13-year old girl, but who in fact was an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $150.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Miller was immediately turned over to the custody of the U.S. Marshals Service.
Priest Charged with Production, Transportation,And Possession of Child PornographyRead the Press Release
Richard James Kurtz, 69, formerly of Clarkston, Michigan, was charged in a criminal complaint with production, transportation, and possession of child pornography, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Division.
According to court records, Kurtz, a Jesuit priest and former teacher at the University of Detroit Jesuit High School, was arrested in November 2011—while he was residing in Chicago—for “sexual assault on a child by one in a position of trust.” That arrest was based on an arrest warrant issued out of Douglas County, Colorado, for conduct that occurred in 2001. After Kurtz’s arrest in Chicago, two Jesuit priests discovered evidence of possible child pornography crimes among Kurtz’s belongings in Chicago, as well at Kurtz’s former residence in Clarkston, Michigan. The Jesuits provided that evidence to the FBI.
According to court records, the FBI’s investigation revealed that Kurtz surreptitiously videotaped UDJHS hockey players changing in the locker room after games during the 1998-1999 hockey season. Beyond this production of child pornography, the FBI also discovered that Kurtz transferred other child pornographic material from Clarkston to Chicago, and possessed still other child pornography in Clarkston.
Kurtz was arrested today in Missouri where he will face a magistrate judge for removal to the Eastern District of Michigan. If convicted of these offenses, Kurtz faces a term of 15-30 years in custody for the production of child pornography charge, 5-20 years in custody for the transportation of child pornography charge, and up to 10 years in custody for the possession of child pornography charge.Kurtz was a teacher of chemistry at the UDJHS from 1970-1973, 1978-1983, and from September 1984-May 2001.
McQuade praised the work of the FBI agents for their professionalism and dedication in their aggressive and thorough investigation of these cases.
Assistant United States Attorneys Kevin M. Mulcahy is prosecuting this case for the United States.Porcupine Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Jefferson Swallow, age 23, was indicted on September 22, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on September 25, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between March 2014 and August 2014, at Porcupine, Swallow knowingly received and possessed computers files containing images of child pornography.
The charges are merely accusations and Swallow is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Swallow was detained pending trial. A trial date has not been set.
Pittsburgh Woman Sentenced to 5 Years Probation for Selling Subscriptions Without Delivering MagazinesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to five years probation and 200 hours of community service on her conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill imposed the sentence on Larhon Buchanan, 33, of Pittsburgh, PA.
According to the information presented to the court, Buchanan was a co-owner of several businesses that purported to sell magazine subscriptions but only collected money from victims without ever providing the magazine subscriptions. The scheme took place in cities throughout the country. Losses to the victims were approximately $2 million. The business names used were New Image Consultants, Inc., Fresh Start Opportunities, A Fresh Start by Larhon Buchanan, A Fresh Start by Samuel Cole, and Destiny Sales, Inc.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Larhon Buchanan.
Pittsburgh Man Sentenced to 7 Years in Prison for $1.9 Million Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 84 months incarceration, three years supervised release and 500 hours of community service on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill imposed the sentence on Samuel Cole, 44, formerly of Pittsburgh, PA.
According to the information presented to the court, in February, 2007, Cole and his co-defendant, Lahron Buchanan, who previously pled guilty, formed New Image Consultants, Inc. They used Pittsburgh as their home base and traveled to several cities with other salespersons to sell door to door. Over the next four years they owned and operated the following corporations: New Image Consultants, Inc.; Fresh Start Opportunities; A Fresh Start by Lahron Buchanan; A Fresh Start by Samuel Cole; and Destiny Sales, Inc.
None of these businesses provided or paid for a magazine subscription for any of the persons who paid for them.
Salespersons often wore fraudulent credentials purporting to show their company was a member of the National Field Selling Association (NFSA), and when in fact none of the companies was a member. As described in the indictment, the NFSA was a trade association of the door to door sales and the direct sales industry. Each member company agrees to comply with the NFSA Code of Ethics to promptly handle consumer complaints, to not make false, deceptive or misleading statements to prospective purchasers, and to not misrepresent the time period for product delivery.
The sales pitches used were designed to create sympathy for the salesperson, who represented himself/herself to be impoverished, a student, a single parent, or a criminal who was starting over in life. The sales pitches were also designed to take advantage of any charitable inclination of victims by representing that delivery of the magazines could be directed to the local Children’s Hospital, or to the war fighters in the war zone.
Only checks were accepted as payment and the checks were collected by salespersons on the spot. During the course of the scheme, magazine delivery was promised from as little as 90 days and up to as many as 160 days. The victims were given a “receipt” at the time of the sale with instructions on how to seek a refund. Attempts by victims to get refunds were uniformly unsuccessful, and in fact, magazines were never delivered to any victim.
The extensive investigation involved reviewing checks from more than 30 checking accounts used during the scheme. Approximately 30,000 victims from virtually all over the country were identified through these checking accounts. The documented losses to victims is approximately $1,933,586.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Samuel Cole.
Pine Ridge Woman Sentenced for Theft from Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Theft from Indian Tribal Organization was sentenced on September 22, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lorelei Exendine, age 44, was sentenced to 2 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and restitution in the amount of $3,214.57.
Exendine was indicted for Theft from Indian Tribal Organization by a federal grand jury on August 27, 2013. She pled guilty on June 2, 2014.
In December 2009, Exendine was serving as president of the Northern Great Plains Emergency Medical Services Association. In that capacity, she planned a conference for emergency medical service providers to be held in Rapid City. The Oglala Sioux Tribe Ambulance Service, an entity of the Oglala Sioux Tribe (OST), had agreed to co-sponsor the conference. Registration fees totaling over $3,000 were sent directly to Exendine, who kept the money for herself instead of sending it to the OST.
This case was investigated by the Federal Bureau of Investigations. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Pimentel-Lopez Gets 20 Years for Trafficking Ten Pounds of Meth in ButteRead the Press Release
Butte - Jesus Pimentel-Lopez, of Aguililla, Mexico, was sentenced to 240 months in prison today in United States District Court in Butte on conspiracy charges relating to the possession and distribution of methamphetamine. Pimentel-Lopez had previous been found guilty of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine, following a two-day jury trial on June 4, 2014 in Butte. Pimentel-Lopez was sentenced by the Honorable Sam E. Haddon who also presided over the trial.
Pimentel-Lopez was engaged in the methamphetamine conspiracy from July 2012 through February 2013. During the course of the conspiracy, Pimentel-Lopez brought methamphetamine to Montana from Idaho and elsewhere for distribution in Butte. Pimentel-Lopez was found responsible for the possession and distribution of 10 pounds of methamphetamine over the course of the conspiracy.
Jesus Elizondo, one of Pimentel-Lopez's co-conspirators in this case was previously sentenced to 120 months in prison. Timothy Gardiner, another co-conspirator, was sentenced to 84 months in prison. Jeffrey Lackman was sentenced to 98 months for his role in the conspiracy while Elizabeth Gardiner was sentenced to 48 months.
The case was investigated by the Department of Homeland Security, the Butte-Silver Bow Law Enforcement Department and the Federal Bureau of Investigation.